2016 Q3 Form 10-Q Financial Statement

#000127956916004085 Filed on August 05, 2016

View on sec.gov

Income Statement

Concept 2016 Q3 2016 Q2 2015 Q4
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $900.0K $820.0K $860.0K
YoY Change -11.76% -18.81% -43.79%
% of Gross Profit
Research & Development $530.0K $1.180M $420.0K
YoY Change -27.4% 42.17% -37.31%
% of Gross Profit
Depreciation & Amortization $0.00 $1.325K $0.00
YoY Change -100.0% -25.14% -100.0%
% of Gross Profit
Operating Expenses $1.430M $2.008M $1.290M
YoY Change -18.25% 8.47% -41.63%
Operating Profit
YoY Change
Interest Expense -$100.0K -$90.00K $390.0K
YoY Change -113.51% -59.09% -30.36%
% of Operating Profit
Other Income/Expense, Net -$91.39K -$61.23K $0.00
YoY Change -112.32% -69.09%
Pretax Income -$1.520M -$2.070M -$1.120M
YoY Change 50.5% 0.98% -32.12%
Income Tax
% Of Pretax Income
Net Earnings -$1.525M -$2.069M -$1.120M
YoY Change 51.33% 0.98% -32.31%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$13.06K -$17.80K -$9.629K
COMMON SHARES
Basic Shares Outstanding 116.3M shares 116.3M shares 116.3M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q3 2016 Q2 2015 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.800M $2.900M $6.500M
YoY Change -77.22% -69.47% -51.85%
Cash & Equivalents $1.759M $2.888M $6.493M
Short-Term Investments
Other Short-Term Assets $200.0K $400.0K $200.0K
YoY Change 0.0% 0.0% 0.0%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $2.000M $3.260M $6.686M
YoY Change -75.38% -67.12% -51.42%
LONG-TERM ASSETS
Property, Plant & Equipment $55.20M $27.44K $30.08K
YoY Change 173294.06% -18.3% -18.97%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $55.20M $55.23M $55.23M
YoY Change -0.06% -0.01% -0.01%
TOTAL ASSETS
Total Short-Term Assets $2.000M $3.260M $6.686M
Total Long-Term Assets $55.20M $55.23M $55.23M
Total Assets $57.20M $58.49M $61.92M
YoY Change -9.72% -10.22% -10.27%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $200.0K $125.6K $122.0K
YoY Change 12.04% -41.4% -54.88%
Accrued Expenses $400.0K $335.1K $394.4K
YoY Change -18.73% -4.06% -55.11%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $15.30M $15.16M $516.5K
YoY Change 2181.29% 2590.35% -55.06%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $0.00 $0.00 $13.90M
YoY Change -100.0% -100.0% -5.44%
Total Long-Term Liabilities $0.00 $0.00 $13.90M
YoY Change -100.0% -100.0% -5.44%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.30M $15.16M $516.5K
Total Long-Term Liabilities $0.00 $0.00 $13.90M
Total Liabilities $15.30M $15.16M $14.42M
YoY Change 2.89% -0.02% -9.04%
SHAREHOLDERS EQUITY
Retained Earnings -$235.5M -$231.0M
YoY Change 2.92% 2.13%
Common Stock $277.7M $277.7M
YoY Change 0.09% 0.2%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $41.86M $43.33M $47.50M
YoY Change
Total Liabilities & Shareholders Equity $57.20M $58.49M $61.92M
YoY Change -9.72% -10.29% -10.27%

Cashflow Statement

Concept 2016 Q3 2016 Q2 2015 Q4
OPERATING ACTIVITIES
Net Income -$1.525M -$2.069M -$1.120M
YoY Change 51.33% 0.98% -32.31%
Depreciation, Depletion And Amortization $0.00 $1.325K $0.00
YoY Change -100.0% -25.14% -100.0%
Cash From Operating Activities -$1.140M -$2.190M -$1.210M
YoY Change 12.87% 11.17% -8.33%
INVESTING ACTIVITIES
Capital Expenditures $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change
Cash From Investing Activities $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 20.00K 0.000
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities -1.140M -2.190M -1.210M
Cash From Investing Activities 0.000
Cash From Financing Activities 20.00K 0.000
Net Change In Cash -1.120M -2.190M -1.210M
YoY Change 10.89% 11.17% -120.27%
FREE CASH FLOW
Cash From Operating Activities -$1.140M -$2.190M -$1.210M
Capital Expenditures $0.00
Free Cash Flow -$1.210M
YoY Change -8.33%

Facts In Submission

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dei Document Type
DocumentType
10-Q
dei Amendment Flag
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false
dei Document Period End Date
DocumentPeriodEndDate
2016-06-30
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2016
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Entity Registrant Name
EntityRegistrantName
INTERNATIONAL TOWER HILL MINES LTD
dei Entity Central Index Key
EntityCentralIndexKey
0001134115
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
CY2016Q3 dei Entity Common Stock Shares Outstanding
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us-gaap Nature Of Operations
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif"> </div> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0px"></td> <td style="WIDTH: 0.5in"> <div><b>1.</b></div> </td> <td style="TEXT-ALIGN: justify"> <div><b>GENERAL INFORMATION, NATURE OF OPERATIONS AND LIQUIDITY RISK</b></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> International Tower Hill Mines Ltd. (&#8220;ITH&#8221; or the "Company") is incorporated under the laws of British Columbia, Canada. The Company&#8217;s head office address is 2300-1177 West Hastings Street, Vancouver, British Columbia, Canada.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> International Tower Hill Mines Ltd. consists of ITH and its wholly owned subsidiaries Tower Hill Mines, Inc. (&#8220;TH Alaska&#8221;) (an Alaska corporation), Tower Hill Mines (US) LLC (&#8220;TH US&#8221;) (a Colorado limited liability company), Livengood Placers, Inc. (&#8220;LPI&#8221;) (a Nevada corporation), and 813034 Alberta Ltd. (an Alberta corporation). The Company is in the business of acquiring, exploring and evaluating mineral properties, and either joint venturing or developing these properties further or disposing of them when the evaluation is completed. At June 30, 2016, the Company was in the exploration stage and controls a <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 100</font>% interest in its Livengood Gold Project in Alaska, U.S.A.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> These unaudited condensed consolidated interim financial statements have been prepared on a going-concern basis, which presumes the realization of assets and discharge of liabilities in the normal course of business for the foreseeable future.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> The Company will require significant additional financing to continue its operations in connection with advancing activities at the Livengood Gold Project, to make the Additional Payment due on January 12, 2017 (see Note 6) and for the development of any mine that may be determined to be built at the Livengood Gold Project. There is no assurance that the Company will be able to obtain the additional financing required on acceptable terms, if at all.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> As of June 30, 2016, the Company&#8217;s estimate of the amount of the Additional Payment is $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">14,700,000</font>, which significantly exceeds the Company&#8217;s available cash resources, and therefore the Company will be required to obtain significant additional financing on or before January 12, 2017 in order to be able to make this payment.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> Should the Company be unable to make the Additional Payment, the Company will have 30 days to remedy the event of default. Should the default not be remedied, the Company may be required to deliver the underlying claims, which are not part of the project&#8217;s gold resource but are part of the 75 square mile Livengood land package, into a trust in order for them to be sold. Should the proceeds from sale not be sufficient to satisfy the outstanding amount of the Additional Payment, the beneficiaries will have recourse against the Company for any shortfall. The Company considers it highly likely that the proceeds from any such sale, should it prove necessary, would be sufficient to satisfy the amount of the Additional Payment.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> In addition, any significant delays in the issuance of required permits for the ongoing work at the Livengood Gold Project, or unexpected results in connection with the ongoing work, could result in the Company being required to raise additional funds to advance permitting efforts. The Company&#8217;s review of its financing options includes pursuing a strategic alliance to assist in further development, permitting and future construction costs.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif"> Despite the Company&#8217;s success to date in raising significant equity financing to fund its operations, there is significant uncertainty that the Company will be able to secure any additional financing in the current or future equity markets. The amount of funds to be raised and the terms of any proposed equity financing that may be undertaken will be negotiated by management as opportunities to raise funds arise. Specific plans related to the use of proceeds will be devised once financing has been completed and management knows what funds will be available for these purposes. Due to this uncertainty, if the Company is unable to secure additional financing, it will be required to reduce all discretionary activities at the Project to preserve its working capital to fund anticipated non-discretionary expenditures beyond the 2016 fiscal year.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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